US Goods Trade Deficit Falls 46 Percent in April as Imports Decline

Early forecasts signal a spike in second-quarter GDP growth.

The U.S. goods trade deficit declined sharply in April from a record in March as the effects of front-running President Donald Trump’s tariffs faded.

According to an advance estimate from the Census Bureau, the goods trade gap plummeted 46 percent, to $87.6 billion, from the all-time high of $162.25 billion registered in March. This represented the smallest trade deficit for goods since December 2023.

While economists had anticipated a substantial slowdown, last month’s reading came in better than the consensus forecast of $141.5 billion.

Goods imports tumbled 19.8 percent, or $68.4 billion, to $276.1 billion. Exports of goods rose by 3.4 percent, or $6.3 billion, to $188.5 billion.

Advance retail and wholesale inventories were virtually unchanged at $803.5 billion and $906.9 billion, respectively.

Leading up to the president’s sweeping global tariff plans on April 2, companies had rushed to stockpile consumer goods to avoid the anticipated levies.

Declining imports are expected to bolster the GDP growth rate in the current quarter. Imports are subtracted from the GDP calculations because they measure the value of goods and services produced domestically.

Early forecasts suggest that the U.S. economy may experience a rebound in the second quarter.

The Federal Reserve Bank of Atlanta’s widely watched GDPNow Model points to a 3.7 percent expansion in the April–June period. This is up from the regional central bank’s 2.2 percent estimate prior to the publication of the goods trade deficit.

In the first quarter, the U.S. economy contracted by 0.2 percent—the reading was revised upward by a hair from the initial estimate of negative 0.3 percent—primarily driven by soaring imports and a modest decline in government spending.

In addition to U.S. businesses perhaps temporarily pulling back on their spending, individuals also tempered their consumption.

According to the Bureau of Economic Analysis, personal spending rose 0.2 percent in April, down from the 0.7 percent increase in the previous month.

Personal income, however, surged at a pace that was significantly better than expected, at 0.8 percent.

The data do not signal an economy on the brink of disaster, but the numbers illustrate how tariffs can facilitate specific patterns, says Joseph Brusuelas, the chief economist and principal at RSM.

“It is an example of how the threat of higher tariffs dramatically affects spending by businesses, first in the front-running of purchases to avoid higher costs, and then in the pullback once inventories are built up,” said Brusuelas in a May 30 note.

“This data only adds to the uncertainty around the economic outlook at a time when trade policy changes on an almost daily basis.”

By Andrew Moran

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Resource number one

Russia has an unsustainable birthrate worsened by mortality rate of Russian males through war and alcoholism. One solution, steal young children from other countries. 

Expansionist CCP Runs Amok in Pacific After U.S. Relocates Naval Assets to Mid-East

Caveat established, China’s been going bananas on the high seas as the eyes of the world, and U.S. military assets, hone in on Iran.

The Anti-Trump Protests – Why Are They So Important?

The anti-Trump stance is not a political position, but a desperate gesture, a mental diagnosis of those who refuse to accept the reality of the World today.

WNBA Women are NOT Worth NBA Salaries!

WNBA women are NOT worth NBA salaries, and the recent treatment of WNBA star Caitlin Clark is all the proof you need as evidence this statement is true.

Vampires of Southeast Asia

Ladies of South Asia are covered head to foot, but it’s not about religion. it's about keeping skin tone as light so as not to misconstrued as a peasant.

Supreme Court Limits Factors Courts May Consider When Revoking Supervised Release

On June 20, the Supreme Court voted 7–2 to limit the factors that judges are allowed to consider when revoking supervised release.

Reports: B-2 Stealth Bombers Depart United States, Heading West

Reports indicate multiple U.S. Air Force B-2 Spirit stealth bombers departed Whiteman Air Force Base, MS, overnight on June 20 and June 21, heading west.

Judge Sides With Universities Over National Science Foundation’s Research Cost Cap

Federal judge vacated the National Science Foundation’s (NSF) new policy that capped indirect cost rates on research grants awarded to universities.

Tren de Aragua Gang Member and Illegal Immigrant Attacks ICE, FBI Agents

HHS arrested an illegal immigrant and Tren de Aragua gang member who “violently attacked” special agents from the FBI and ICE, the agency said.

US Enters Israel-Iran Conflict

U.S. warplanes dropped bombs on Iran’s Fordow uranium enrichment facility and two other nuclear facilities, President Trump announced on Truth Social.

No Changes Planned for FDA’s Vaccine Advisory Committee ‘At This Time’: Spokesperson

There are no plans to remove any members of the panel that advises the FDA on vaccines, a spokesperson said on June 20.

Trump Says Trade Deals Expected With India and Pakistan

President Trump expects US will sign trade deals with India and Pakistan, signaling growing momentum in push to reshape global trade through tariff diplomacy.

Trump Says US Intelligence Community’s Assessment of Iran’s Nuclear Program ‘Was Wrong’

President Trump said his director of national intelligence’s assessment in March that Iran had yet to decide on building a nuclear weapon was wrong.
spot_img

Related Articles

Popular Categories

MAGA Business Central